Starbucks – Case Study Example

Starbucks’ Success The Starbucks Company has exhibited immense growth in the recent past, factors that have made it a renowned global brand. In 2006, the company’s profits and earning registered new levels. The trend of growth has continued even in the modern day. Many scholars have focused on highlighting the factors that have contributed to the success of the company. This paper will discuss the leading causes of success in the Starbucks Company.
Starbucks advanced from any common coffee-seller and began to offer its customers the Starbucks experience. This experience is defined by a unique informal setting whereby customers can relax as they enjoy their favorite coffee brand or other drinks. Howard Schultz conceived this idea in the 1980s. Over the years, the strategy has contributed to Starbucks success because its stores offer customers a ‘third place’ in addition to the home and work place. Moreover, Starbucks embarked on an expansion process, which saw it opening many stores in the United States. In addition, Starbucks then focused on international markets. Its first international target market was Japan, whereby the company sought to introduce the Starbucks experience in a new culture. The company registered success in Japan, a factor that motivated it to venture into other countries. In 2006, the company had about 12,000 stores and has a target of having 40,000 stores across the globe.
In addition, Starbucks developed a unique location strategy, which ensured that it settled for premium locations attracting more customers. The company has also given attention to ensuring that customers receive high quality service. In order to achieve this, it offers training and empowerment programs to its employees. Notably, the company has an effective compensation scheme for its employees, a factor that leads to high employee retention. The fact that the company provides other drinks apart from the main product line also ensures a higher level of customer satisfaction. All these factors explain the immense growth registered by Starbucks over the years.